Trump Media (NASDAQ:DJT) Stock Hits All-Time Low as Lock-Up Period Expires

Shares of Trump Media & Technology Group (DJT), the company behind the Truth Social platform, fell as much as 7% and hit an all-time low as lock-up restrictions on the stock expire.

The lock-up period, which is expiring six months after the stock’s market debut in March of this year, had prevented its majority shareholder, former U.S. President Donald Trump, and other early investors from selling their shares. With the lock-up expiring, there is speculation that Trump, and others, may now dump their holdings of the stock.

In recent days, Trump has said that he does not plan to sell any of his shares in Trump Media. But markets seem to think that may not be the case, judging from the share price decline. In a regulatory filing with the U.S. Securities and Exchange Commission (SEC), the social media company acknowledged that the end of the lock-up period could see heavy selling in DJT stock.

Declining Fortunes

Former president Trump owns 65% of Trump Media, which runs the Truth Social platform that is similar to X, formerly known as Twitter. While Truth Social has proven to be popular with Trump’s political supporters, the company behind the social media platform has struggled financially. Shortly after going public via a special purpose acquisition company (SPAC), Trump Media reported a net loss of $327.6 million on less than $1 million in revenue.

Year-to-date, DJT stock is down 20%. However, the share price is down 82% from a peak of $79.38 reached shortly after the company’s market debut. Trump Media stock is now trading at $14 per share. The security has proven volatile during the current presidential campaign in which Trump is seeking re-election. The share price tends to move on major news from the campaign trail or when poll results are made public.

Is DJT Stock a Buy?

No analysts cover Trump Media & Technology Group or offer ratings and prices targets on the stock.